The California Alternative Energy and Advance Transportation Financing Authority has announced the closure of a $20 million clean renewable energy bond deal on behalf of the California Department of Transportation.
The authority will use the proceeds to install solar panels in 70 facilities, and estimates that it will save a total of $52.5 million in energy costs over the projected 25-year life of the equipment.
“In just a short time, taxpayers will make a return on their investment and over the long term they’ll save themselves millions of dollars in energy costs,” state Treasurer Bill Lockyer, chairman of the CAEATFA, said in a statement.
Under the CREB program, the federal government pays bondholders up to 100% of the interest directly in the form of a tax credit.
Banc of America Leasing & Capital LLC purchased the bonds pursuant to private placement. Orrick, Herington & Sutcliffe LLP was bond counsel.
Caltrans will pay a 1.45% interest rate over the bonds’ 15-year term, according to the CAEATFA. It was the authority’s first financing under the CREB authority created by the federal Energy Tax Incentive Act of 2005, said spokesman Joe DeAnda. He said the authority is looking to issue more clean renewable energy bonds under new authority by the American Recovery and Reinvestment Act of 2009.
